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Altcoins have not entirely bounced back from the considerable decline that impacted the financial markets a week ago. The majority of large-cap cryptocurrency assets, including Bitcoin, are either revisiting their lows from the prior week or finding it challenging to exert any real pressure from their current standing.
For example, the largest altcoin by market capitalization, Ethereum, after temporarily climbing above $4,200 earlier this week, has reverted to its level following the October 10th market plunge. According to the most recent on-chain analytics, it seems that investors are progressively diminishing in their faith in the long-term prospects of the altcoins.
Are Altcoins Headed for A More Severe Correction?
In a recent update on X, CryptoQuant’s Head of Research, Julio Moreno, disclosed that altcoins are being transferred in substantial amounts to centralized exchanges. This emerging trend indicates a shift towards a less favorable outlook in investor sentiment following a notably positive start to the month of October.
The pertinent indicator in this context is the Exchange Inflow Transaction Count, which assesses the frequency of transactions involving the deposit of a cryptocurrency (altcoins, in this instance) into a centralized exchange. This metric can be utilized to evaluate investor sentiment at any given instance in the market.
A notable increase in the Exchange Inflow Transaction is generally interpreted as a bearish indicator, as it implies that investors are relocating their assets to centralized exchanges with the intention to sell. Ultimately, this trend could suggest impending selling pressure for the cryptocurrency (or collection of digital assets, as is the case here).
Moreno indicated in his message on X that the number of transactions transferring altcoins onto trading platforms has reached a new peak in 2025. As demonstrated in the chart below, the largest cryptocurrency exchange globally by trading volume, Binance, has accounted for a significant portion of the cryptocurrencies flowing into these centralized platforms.
While the market already appears to be experiencing a considerable correction, a continuous influx of assets into exchanges could suggest a prolonged phase of downward trend for the altcoins. However, the peak of this metric could also be crucial, as it might indicate the bottom and possible turnaround of the altcoin market.
Altcoin Market Capitalization Drops To $1.45 Trillion
According to the most recent figures, the cryptocurrency market (excluding Bitcoin) is estimated at approximately $1.45 trillion, signifying an over 1% decline in the last 24 hours. Even more concerning is the market’s performance over the past week, as the altcoins have experienced a nearly 13% reduction in value within the last seven days.
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